Contributions
Defined Benefit or Accumulation 2
Membership of the UniSuper Defined Benefit or Accumulation 2 Plans allows members to choose a standard member contribution rate of between 0% and 7% of their gross salary. The University also contributes the equivalent of 17% of the member’s gross salary to UniSuper.
The default standard member contribution rate is 7% of gross salary, deducted from after tax pay. This rate of contributions entitles the member to full benefits. An election must be made to reduce the member contribution to less than 7%. A Contribution Flexibility Guide and election form is available from the UniSuper website.
The available member contribution rates for the UniSuper Defined Benefit and Accumulation 2 Plans are as follows:-
| Deduction from After Tax Pay | Deduction from Pre Tax Pay (Salary Sacrifice) |
7% (Current Standard Contribution) |
8.25% (Current Standard Contribution) |
4.45% |
5.25% |
4% |
4.70% |
3% |
3.55% |
2% |
2.35% |
1% |
1.20% |
0% |
Not applicable |
Voluntary Contributions
Defined Benefit Plan or Accumulation 2 members can elect to make additional voluntary contributions to the Accumulation Plan. Additional voluntary contributions cannot be made to the Defined Benefit Plan
Acccumulation 1 members can also elect to pay voluntary contributions to the UniSuper Accumulation Plan.
Voluntary contributions can be made as a deduction from pre tax pay (salary sacrifice) or after tax pay, subject to the relevant contribution limits.
To make an additional voluntary contribution to UniSuper, members need to complete either the Salary Sacrifice to Superannuation online form or the After Tax Voluntary Contribution online form
Benefits
Benefits Formula
Benefits from the Defined Benefit plan are determined by a formula.
This formula is:-
Years of Service x Benefit Factor x Benefit Salary x Average Service Fraction x Average Contribution FactorFor example:-
A member retires after 20 years of full-time service in the Defined Benefit plan at age 55 without any periods of leave without pay and she paid contributions at the full rate throughout her membership. Her benefit salary is $60,000. The benefit formula would be:-
20 x 21% x $60,000 x 100% x 100% or
4.2 X $60,000 = $252,000 Lump Sum
Definition of Formula Terms
The benefit factor for the member is 21% because she is aged 55 upon leaving the plan. The benefit factors in the Defined Benefit plan range from 18% for ages up to 40 years, to 23% for a member aged 65 years. Between ages 40 and 65 years the benefit factors increase on a daily basis by 0.2 percentage points per year.
The benefit salary is an average of a member’s indexed salary over the last three years of service.
The average service fraction is only relevant to the formula if the member has, at any time during their period of service in the Defined Benefit plan, taken leave without pay or reduced their hours below full-time.
The average contribution factor is only relevant to the formula if the member has elected to pay less than 4.45% standard member contributions during their period of membership.
Calculating Benefits
Benefits from the Accumulation 2 plan are an accumulation of contributions minus tax, administration fees and insurance premiums, plus or minus investment returns.
The investment returns to your account will depend on the performance of the strategy/ies you choose.
You may change your investment strategies up to once a month but more than one change per financial year will incur a charge. Further information regarding these investment strategies is available from the UniSuper website.
Withdrawing Benefits
All benefits over a total $200 must be preserved in any complying superannuation fund until at least age 55 and permanent retirement from the workforce. If you wish, UniSuper can retain your superannuation and continue to invest it until you retire.